EUR/USD Bears Emerging From the Woods?

10 December 2009

The FX Trader's view -

WEEKLY CHART: So far the 76.4% recovery level has provided good resistance, and s/term reaction here has been negative.

Support from around the old Dec-08 high has come under pressure.

DAILY CHART:

Breach of a s/term bull channel base provided a preliminary bear sign.

And now we wish to see a close below the 1.4623 03-Nov low for a better signal - this would also see violation of the bigger bull channel base.

But the 23.6% level at 1.4510 would warn against chasing the market down from these lower levels.

However, at that stage we would be assuming that s/term strength was temporary ahead of further bear action.

Philip Allwright

Mark Sturdy

Seven Days Ahead